THE Deposit Protection Corporation Zimbabwe (DPC) has so far paid a total of about $139 million to creditors of six failed banks under liquidation.
DPC public relations manager Allen Musadziruma told NewsDay Business on the sidelines of the International Association of Deposit Insurers (IADI) Africa regional committee conference and annual general meeting being held in Victoria Falls that creditors received 92 cents per dollar.
"On the liquidation front, total recoveries in cash, treasury bills and properties were $355 million as at 30 June 2022,” he said.
“This translates to a recovery rate of 131%. Total dividends paid out to concurrent creditors of the six failed banks under liquidation were $139 million or 92 cents per dollar as at June 30, 2022,” Musadziruma added.
The six failed financial institutions were Royal Bank, Trust Banking Corporation, Afrasia, Interfin Banking Corporation, Allied Bank and Genesis Investment Bank.
Musadziruma said DPC had compensated insured depositors of nine failed banking institutions since its inception in July 2003.
A total of 26 724 out of 59 524 depositors for a total of nine closed institutions have benefited from the deposit protection scheme since its inception.
“Compensation to depositors of three institutions, namely Century Discount House, Rapid Discount House and Sagit Finance House was done during the Zimbabwe dollar era from 2004 to 2006, when DPC’s mandate was still that of a pay box scheme,” he said.
- DPC pays out $139 million
- Zimdollar shortage hits market
- Nedbank Zim profit surges
- Editor's Memo : Clean up procurement corruption
Keep Reading
In 2012 the mandate of DPC was broadened and now it pays compensation to depositors on two fronts: the deposit protection fund (DPF) up to the maximum insurable limit as well as liquidation dividends on a pro-rata basis depending on debt recoveries and asset realisation.
Since 2012, after dollarisation 23 242 (42%) out of 54 909 depositors have been compensated from the DPF which translates to $4,04 million or (63%) against $6,4 million exposure by value.
With respect to loss of value due to currency changes of 2019, DPC has paid out US$83 356 to 917 depositors in deposit taking microfinance institutions, by the time the scheme was closed on July 10, 2022.
On-going compensation for loss of value to depositors of POSB commenced on August 22, 2022 and to date US$120 936 has been paid out to 544 POSB depositors.
The conference, which started on Monday and ends tomorrow, is running under the theme Building Resilience for Deposit Insurance Systems: The New Normal.
